Investing.com - Financial Markets Worldwide

JPY Is Only G10 Currency To Decline Against USD

ByDanske Markets
Published 09/16/2013, 07:10 AM
Updated 05/14/2017, 06:45 AM
USD/JPY
0.25%
AUD/USD
0.16%

This week the scorecard recommends buying JPY, AUD, and CAD while selling NOK, SEK, and GBP.

The JPY was the only currency in the G10 sphere to decline against the USD in the week ending Friday, September 13, and according to the model, the sell-off seems overdone. Moreover, due to the negative USD/JPY risk reversal, the input factor of option market positioning currently also favours a long JPY position. Hence, all in all, the scorecard recommends buying JPY again this week. The long basket also includes the AUD and the CAD this week. Some changes in input factors have been seen though, especially in the AUD where the input factors of market positioning and interest rates have become negative due to last week's decline in AUD/USD risk reversal, and a rise in short-term interest rates. All in all however, the model still recommends buying AUD.

Following last week's increase in Norwegian interest rates, this input factor favours being long NOK. However, last week's rally in NOK seems overdone according to the model and the scorecard recommends selling NOK this week. This week's short basket also includes SEK and GBP as most input factors favour being short these two currencies.

Last week's signals resulted in a 1.0% loss. The short JPY and the long NOK, positions performed well, while the short NZD position was expensive.

Next scorecard signals will be sent out on 23 September.

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.